PNB MetLife Insurance commenced operations in 2001 as a joint venture between Jammu & Kashmir Bank Limited, Punjab National Bank, MetLife International Holdings, M. Pallonji, and Company Private Limited. Over the last couple of decades, the insurer has built a solid portfolio of financial products, including child education policies, retirement plans, savings policies, family protection policies, term insurance policies, and more. The insurer has an annual average business volume of ₹8,508 crores.
While the provider boasts of a good Claim Settlement Ratio and Amount Settlement Ratio, what concerns us is its sky-high complaint volume. Despite such reservations, we still need to conduct an in-depth analysis to see if purchasing term insurance plans from this insurer will be a wise financial move!
| Pros | Cons |
|---|---|
| Excellent Claim Settlement Ratio | High complaint volume |
| Good Amount Settlement Ratio |
Metrics of PNB MetLife Insurance
PNB Metlife, a general insurance provider, hosts a diverse list of financial products. However, the product in discussion is a term insurance policy since they are affordable and the safest bets across the life insurance industry and are thus widely popular. Such policies act as pure financial protection tools and serve as financial replacements in the event of the policyholder’s death. These pure financial products can be customised to meet the personal financial requirements of a family.
PNB MetLife Insurance offers 3 variants of term plans - PNB MetLife Mera Term Plan, PNB MetLife Mera Term Plus Plan, and PNB MetLife Saral Jeevan Bima. Each of these plans comes with unique features, a range of coverage, rider options, and multiple plan options.
However, before we start delving into the details of each of the term insurance policies offered by PNB MetLife, here’s something that you need to remember - since term insurance plans are meant to act as income replacements, the coverage amount is almost always in crores. When entrusting such a significant amount to an insurer, you want the reassurance that the chosen amount will be disbursed to your nominee without any hassles or delays. Hence, you should seek a credible term insurance provider. Will PNB stand up to this requirement? Let’s take in a few metrics, draw out the average for the last 3 years, tally it against the industry average and decide its credibility.
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Claim Settlement Ratio of PNB MetLife Insurance
An insurer calculates its Claim Settlement Ratio (CSR) by dividing the total number of claims settled in a year by the total number of claims received in the same year and then multiplying the result by 100. This calculation measures the insurer's credibility, indicating how efficiently it fulfils its claim obligations.
A high CSR, typically 97% or above, indicates a credible provider who consistently settles most claims received. Conversely, insurers with a CSR below 80% or exceeding 100% cannot be trusted as credible providers.
An insurer with a CSR exceeding 100% may indicate issues such as delayed claim settlements from previous years being added to the current year's claim count, potentially reflecting inefficiencies or a backlog in processing claims. Therefore, it is advisable to avoid such insurers.
| Years | PNB MetLife Insurance | Industry Average |
|---|---|---|
| 2020 - 2021 | 98.17% | 97.49% |
| 2021 - 2022 | 97.33% | 97.50% |
| 2022 - 2023 | 99.09% | 98.34% |
| Average (2020 - 2023) | 98.20% | 97.74% |
Insight: PNB MetLife has an excellent Claim Settlement Ratio that surpasses the industry average. This is a good start for the insurer. However, CSR is just one metric to determine an insurer’s credibility. Thus, you can’t base insurer choice based on just 1 metric.
Amount Settlement Ratio of PNB MetLife Insurance
Purchasing a term insurance policy represents a significant financial decision due to the substantial amount involved. The sum assured will also be your economic substitute during your unfortunate absence. Therefore, you seek an insurer known for settling claims credibly and efficiently.
To assess an insurer's credibility in this regard, you must examine its Amount Settlement Ratio (ASR), calculated as follows:
(total amount of claims settled / the total amount of claims filed to the insurer over a single year) * 100
Analysing an insurer's ASR helps determine whether it prioritises settling numerous minor claims over high-amount claims to inflate its CSR.
| Years | PNB MetLife Insurance | Industry Average |
|---|---|---|
| 2019 - 2020 | 87.2 | 90.8 |
| 2020 - 2021 | 93.9 | 91.2 |
| 2021 - 2022 | 93.4 | 90.6 |
| Average (2019 - 2022) | 91.5 | 90.9 |
Insight: The ASR of PNB MetLife Insurance is above the recommended threshold of 90. Also, its numbers have progressively increased over the years, which is an excellent sign for potential policyholders.
Complaint Volume of PNB MetLife Insurance
When selecting a term insurance provider, it's essential to consider the provider's complaint volume (per 10,000 claims filed). This provides valuable insight into the claim settlement experience of current policyholders. Most complaints arise from delayed or rejected claim settlements, so the complaint volume metrics effectively illustrate the insurer's claim settlement intent and potential.
| Years | PNB MetLife Insurance | Industry Average |
|---|---|---|
| 2020 - 2021 | 71.0 | 67.6 |
| 2021 - 2022 | 36.0 | 76.5 |
| 2022 - 2023 | 64.0 | 65.3 |
| Average (2020 - 2023) | 57.0 | 72.8 |
Insight: PNB MetLife Insurance’s complaint volume is one of the highest in the industry. This is a significant concern since complaints generally result from claim settlement issues. So, chances are high that the insurer has been having issues with its overall operational efficiency and claim settlement process. You must consider this significant hurdle before finalising PNB MetLife as your term insurance provider.
Offered Riders in PNB MetLife Insurance’s Term Insurance Plans
To ensure the customisation of the available term insurance plans, PNB MetLife offers a host of value-worthy riders. Such riders help you meet your and your family’s tailored future financial goals.
| PNB MetLife Mera Term Plan | PNB MetLife Mera Term Plus Plan | PNB MetLife Saral Jeevan Bima | |
|---|---|---|---|
| Waiver of Premium | ✘ | ✘ | ✘ |
| Accidental Death Benefit | ✔ | ✔ | ✘ |
| Critical Illness Rider | ✔ | ✔ | ✘ |
| Income Benefit on Accidental Disability Rider | ✘ | ✘ | ✘ |
| Serious Illness Cover | ✔ (10 ailments covered) | ✔ | ✘ |
| Cancer Cover | ✘ | ✘ | ✘ |
| Total and Permanent Disability Rider | ✔ (In case of accidents) | ✔ | ✘ |
| Hospi Care Benefit | ✘ | ✘ | ✘ |
| Top-Up | ✘ | ✘ | ✘ |
Term Insurance Plans Offered by PNB MetLife Insurance
- PNB MetLife Mera Term Plan: This is a comprehensive policy that offers multiple perks, including joint life cover, life stage benefits, and more. The policy has 3 plan options -
- Lump Sum Death Benefit: The base cover is paid out as a lump sum as a death benefit upon the policyholder's death.
- Lump Sum Death Benefit + Regular Monthly Income (10 years): Upon the policyholder's death, 50% of the cover is paid out as a lump sum. The remaining 50% is disbursed over monthly instalments over 10 years.
- Lump Sum Death Benefit + Increasing Monthly Income (10 years): In the event of the policyholder’s death, half of the cover is disbursed in one -go. The resort 50% is given out in monthly instalments. However, in the case of the instalments, the amount paid increases by 12% each year.
- Lump Sum Death Benefit + Regular Monthly Income till the child turns 21: If the dependent child is less than 15, the policyholder can opt for this variant. Under this plan option, 50% of the base cover is paid in one go in the case of the policyholder’s death. The remaining 50% is paid out in instalments until the child turns 21.
The PNB MetLife Mera Term Plan offers a few riders, namely -
- Serious Illness Rider: If you are diagnosed with any of the 10 serious ailments listed, the insurer offers you an additional lump sum over and above the base cover amount.
- Accidental Death Benefit Rider: If the death of the policyholder is a result of an accident, you can get an extra amount that is over and above your cover amount.
- Critical Illness Rider: If you are diagnosed with cancer (1st time)or have a heart attack, the insurer pays an additional buffer amount that can be used at your discretion.
- Accidental Disability Benefit Rider: If you become disabled following an accident, you receive a lump sum that can help, considering your compromised source of income.
2. PNB MetLife Mera Term Plus Plan: This is a good pick as a vanilla term insurance plan that offers 3 plan options -
- Life: In the event of the policyholder's death, a death benefit (equal to the cover amount) is paid to the beneficiary.
- Life Plus: Apart from the death benefit perk, the Life Plus variant also offers advantages like -
- Terminal Illness: Upon the diagnosis of a terminal illness (a written declaration by a doctor stating that you have a terminal ailment with a poor prognosis, leaving you only a few months to live), the entire base amount is disbursed to be used at your discretion.
- Waiver of Premium: If you are diagnosed with any of the 50 listed critical ailments or are left totally and permanently disabled, the insurer waives any leftover premiums to be paid towards your policy.
- Life Plus Health: This variant offers all the features of the Life Plus Health option, and along with it, it also provides -
- Accelerated Critical Illness benefit: If you are diagnosed with any of the 50 listed critical illnesses, the insurer offers you a lump sum. However, this amount is deducted from your base cover, so when your nominee gets the death benefit, this lump sum will be deducted from the total sum.
The PNB MetLife Mera Term Plus Plan also offers riders similar to those of the PNB MetLife Mera Term Plan. This includes - Serious Illness Rider, Accidental Death Benefit Rider, Critical Illness Rider, and Accidental Disability Benefit Rider.
3. PNB MetLife Saral Jeevan Bima: This basic and pure term insurance policy offers coverage of ₹5 lakhs to ₹50 lakhs. This policy lacks comprehensiveness, considering it lacks any unique benefits apart from the death benefit and extends no riders to help customise it.
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Conclusion
PNB MetLife Insurance, despite its extensive insurance track history of more than a couple of decades, has yet to perfect its overall operational efficiency. While some of its term insurance policies are appealing, this insurer can only be a choice if you can ignore its high complaint volume. Otherwise, you should use the free policy comparison tool to tally a few of the best-term insurance plans available before finalising a plan.
